Stocks In Focus MY (AT Systemization, MISC, Supermax Corp) – 10/11/14
AT Systemization Eyes Diversification
AT Systemization, which is on the lookout for new business under a diversification plan, is eyeing an ideal revenue contribution of 20 percent from new businesses in the financial ending 28 February 2016 (FY16).
Though no deal has been finalised so far, the group is said to be in talks to participate in small scale property development, machines related to glove industry or palm oil related matters, with an eye to securing some new businesses next year.
Executive director Mak Siew Wei shared that while AT’s existing business is sound in the risk management aspect, he would not want to put everything in one basket. However, he also noted that the group would not want to rush into a venture unless it is deemed safe.
Significance: Moving forward, Mak stated that the key focus is to get the firm’s core business into a more profitable position and increase the group’s turnover. Nonetheless, the group will be on a lookout for possible new ventures to further diversify the group’s risks.
MISC 3Q14 Earnings Jump 17%
For the third quarter ended 30 September, MISC’s net profit expanded 17.4 percent to RM470.8 million, on the back of a marginally higher revenue at RM2.2 billion.
The better earnings were attributable to lower finance costs as well as higher operating profit due to lower operating costs from a smaller fleet of operating vessels, partially offset by lower share of profit of joint ventures.
For the nine-month period, top and bottom lines grew 2.6 percent and 24.2 percent to RM7 billion and RM1.2 billion respectively, due to improved freight rates in the group’s petroleum business and higher earning days in its liquefied natural gas business.
Significance: The group noted that chemical and petroleum shipping prospects remain challenging amidst a vessel oversupply market. However, long-term contracts in liquefied natural gas and offshore businesses continue to provide stability to the group.
Supermax Net Profit Slips 22.3%
For the third quarter ended 30 September, Supermax Corporation recorded a 22.3 percent decline in net profit to RM27.9 million due to realised and unrealised forex losses of RM5.9 million.
Quarterly revenue contracted 2.2 percent to RM278.4 million due to lower glove sales. For the nine-month period the group’s turnover and earnings fell 19.9 percent and 21.7 percent respectively to RM748.8 million and RM81.2 million.
Supermax has declared an interim dividend of RM0.02 per share. The firm noted that global demand for gloves remains robust with steady growth expected in developed countries and stronger double-digit growth from emerging markets such as the Middle East and Africa.
Significance: In a separate report, CIMB Equities Research has downgraded Supermax to ‘Hold’, with a reduced target price of RM2.38 due to the underperformance and lack of transparency.
http://www.sharesinv.com
AT Systemization Eyes Diversification
AT Systemization, which is on the lookout for new business under a diversification plan, is eyeing an ideal revenue contribution of 20 percent from new businesses in the financial ending 28 February 2016 (FY16).
Though no deal has been finalised so far, the group is said to be in talks to participate in small scale property development, machines related to glove industry or palm oil related matters, with an eye to securing some new businesses next year.
Executive director Mak Siew Wei shared that while AT’s existing business is sound in the risk management aspect, he would not want to put everything in one basket. However, he also noted that the group would not want to rush into a venture unless it is deemed safe.
Significance: Moving forward, Mak stated that the key focus is to get the firm’s core business into a more profitable position and increase the group’s turnover. Nonetheless, the group will be on a lookout for possible new ventures to further diversify the group’s risks.
MISC 3Q14 Earnings Jump 17%
For the third quarter ended 30 September, MISC’s net profit expanded 17.4 percent to RM470.8 million, on the back of a marginally higher revenue at RM2.2 billion.
The better earnings were attributable to lower finance costs as well as higher operating profit due to lower operating costs from a smaller fleet of operating vessels, partially offset by lower share of profit of joint ventures.
For the nine-month period, top and bottom lines grew 2.6 percent and 24.2 percent to RM7 billion and RM1.2 billion respectively, due to improved freight rates in the group’s petroleum business and higher earning days in its liquefied natural gas business.
Significance: The group noted that chemical and petroleum shipping prospects remain challenging amidst a vessel oversupply market. However, long-term contracts in liquefied natural gas and offshore businesses continue to provide stability to the group.
Supermax Net Profit Slips 22.3%
For the third quarter ended 30 September, Supermax Corporation recorded a 22.3 percent decline in net profit to RM27.9 million due to realised and unrealised forex losses of RM5.9 million.
Quarterly revenue contracted 2.2 percent to RM278.4 million due to lower glove sales. For the nine-month period the group’s turnover and earnings fell 19.9 percent and 21.7 percent respectively to RM748.8 million and RM81.2 million.
Supermax has declared an interim dividend of RM0.02 per share. The firm noted that global demand for gloves remains robust with steady growth expected in developed countries and stronger double-digit growth from emerging markets such as the Middle East and Africa.
Significance: In a separate report, CIMB Equities Research has downgraded Supermax to ‘Hold’, with a reduced target price of RM2.38 due to the underperformance and lack of transparency.
http://www.sharesinv.com
